Brent Crude oil prices slipped in the last hour on the news that Saudi Arabia has been able to restore about ¾ of their crude oil production. The story has not been confirmed by official channels, rather a source briefed Reuters.
According to the report, crude oil production at the Khurais oil fields is now 1.3 million barrels per day, while production at the Abqaiq facility is around 3 million barrels per day. That leaves 1.4 million barrels of production still offline following the attacks on the Saudi crude oil production machinery on September 14. Saudi Arabia has said in the past that they anticipate crude oil production to reach its prior capacity by the end of the month.
Brent Crude oil prices managed to stabilize last week as they reached the September 18 low of $63.07. The price then took a leap higher on last Thursday on comments by Iran’s Javad Zarif as tensions increased between the US and Iran.
Technically, the price trend remains upwards above last week’s low of $63.07, and as long as the price trades above this level crude oil prices might be able to reach September 19 high of $65.55, followed by the next high a $66.44. However, on the price trading below last week’s low of $63.07 crude oil prices might reach the level of $60.20. The $60.20 level is Friday’s closing price the day before the attacks on the Saudi facilities, and the price still maintains a large gap, that might try to close on a break to last week’s low.